Is your home ready for a older generation?

The News & Observer reported today that North Carolina's older population is expected to grow significantly in the coming years. About 20 percent of the American population will be older than 65 by the year, 2030, according to the U.S. Census Bureau. This would be a major increase from its present 12 percent.

It is expected that North Carolina will be lower than the national average at about 17.5 percent as North Carolina is currently growing rapidly among all age groups.

This expected increase in the older population will have an impact on the national housing market since many of these older Americans will require and demand housing that is more balanced with their lifestyle.

With a growing "active" older population, many of these homeowners will want housing that is more "carefree"; allowing them to travel without the need to maintain yards and other such daily and weekly homeowners duties.

Furthermore, another growing housing segment will be the need for single level homes where the aging population will not have steps to climb. This will be important since so many homes in the Raleigh/Durham/Chapel Hill areas have two stories in order to maximize the square footage onto smaller and smaller lots. These same homes will have fewer potential buyers as a growing demographic will be looking for another type of product and one that is somewhat lacking in the communities throughout the Triangle.

Finding a 2,500 square foot ranch in North Raleigh is a challenge for the best real estate agents in the area. As you move into the farther reaches of Wake County, you can find developments that have this type of product, but closer to Raleigh, you find very few of these properties. With the rising land cost, it will be hard for developers to purchase land for this type of product and make it profitable enough to market and sell these units at an affordable rate.

This aging trend will bode well for the condominium projects that have become very popular in the downtown areas, but the affordability for most of these products will not benefit the bulk of the aging population with limited wealth.

It will be an interesting trend to follow to see what happens and what new housing products will come online to assist this growing population.

Gas at 3 Month Low: Can it go lower? Will it?

Did you hear the good news? Gas prices are down to the lowest level in 3 months. GAS PRICES ARE DOWN TO THE LOWEST LEVEL IN 3 MONTHS!!!

The average price U.S. consumers paid for a gallon of gas hit a three month low as the cost dropped 7.1 cents last week to $3.81. Yes, this is still $1.04 a gallon higher compared to a year ago, but it is moving in the right direction, primarily due to the lifting of the Executive Order by President Bush to drill off the coast.

This has caused a $33 drop in crude prices that we should expect to continue to fall over the coming weeks. According to the Energy Information Administration (EIA), every $1 price drop in crude oil results in a 2.4 cents off the price for a gallon of gasoline. If this is truly the case, then gasoline should fall about 79 cents from its peak according to the EIA. Of course, the national price has only fallen 30 cents, but common sense would dictate that the prices will decline slower then they rise due to unforeseen circumstances.

In the EIA's survey, the highest price for gas was on the West Coast at $4.06 a gallon, down 8.3 cents last week. This is the only region to remain above $4 a gallon with San Francisco having the highest big city price at $4.18, down 7.9 cents.

According to AAA Automobile Club, the average price in North Carolina has dropped dramatically over the past month from a high of $4.006 a gallon to $3.879 this month. Of course, this time last year, the price in North Carolina was $2.82 a gallon.

Who Qualifies for mortgage help and how to get it

Questions and answers about the Hope for Homeowners Act of 2008, passed by Congress last weekend to try to steer as many as 400,000 struggling homeowners away from foreclosure: (Originally published by AP Business Writer, Dave Carpenter)

Q: What exactly will the legislation do?

A: It will allow those who qualify to cancel their old mortgage loans and replace them with 30-year fixed-rate loan for up to 90 percent of the home's current value. The FHA will insure a total of $300 billion of the loans over a three-year period.

But the decision on whether to write such a loan remains up to banks, which would have to be wiling to take a loss on the existing loans.

Q: Who is eligible?

A: Eligible borrowers must have spent more than 31 percent of their monthly incomes on their mortgages as of March 1, 2008. The troubled loan must have originated no later than Jan. 1, 2008, and be on the borrower's primary residence. And the borrower's income must be verified.

Stay tune for more Questions and Answers on the new Mortgage Bailout bill.

The Perils of Selling without an Agent

I recently received a phone call from a former co-worker who lives in another city. He mentioned that he made an offer to purchase some land and the mobile homes that are on the property. We spoke for more than an hour and after which, he was not so sure that he made the right decision to attempt to purchase this real property.

One of the perils of purchasing real property without an agent is a lack of knowledge, from either the seller or buyer, or both. This situation, the seller did not occupy the property and wanted to sell, but did not know exactly what he had or the value that should be placed upon the property.

The buyer, my former co-worker, thought he had a great deal, but had no ideal how get the property to closing. After speaking with him for quite some time, he began to realize that it is not as easy as one would think to close on real property. His first concern was the mortgage that he would undoubtedly have to have in order to fulfill his obligation to purchase this home. Had he done it "true" due diligence, he would have realized that he should have spoken with a lender first, to make sure that he could obtain the financing required to purchase such an unusual property. He thought that financing would be easy since the agreed upon sales price was not very much. However, purchasing a manufactured home on a permanent foundation is not that easy to obtain financing, as most real estate agents would know.

Secondly, he did not realize that he would most likely have to hire an attorney in order to purchase this home. In North Carolina, the attorney actually prepares the new deed, so without an attorney, who would prepare the new deed? Furthermore, he did not realize that he may need to have a appraisal performed on the property if he was planning on obtaining financing. Most mortgage companies require an appraisal, especially for unusual properties such as this one.

Finally, after our conversation, he was not sure if the deal he had made would be the most beneficial for him in that the closing cost were on the table. The seller had offer to pay closing cost for a certain sales price. Otherwise, he wanted the purchaser to pay for the closing cost. However, my former co-worker failed to get clarification as to what and whose closing cost would be included. If the seller was willing to pay for all the closing cost, both buyers and sellers, then it would have been a great deal to pay an extra $500 to have the seller pay for them. However, if the seller was talking about only the typical seller's closing cost, then it would not have been a great deal since the largest cost for the seller, real estate commission, would not be paid due to no agents being involved.

Needless to say, my former co-worker decided that he had much more work to do before he could decide if he wanted to continue with the process to purchase this property or walk away and loose the down payment that he had placed on the property.

This is just one of the stories that I have about people trying to sell real property without an agent. The questions I like to put to any potential For Sale By Owner is, "How many homes have you sold in North Carolina?"

The fact remains that about 86% of all homes sold in the U.S. have had the aid of a real estate agent. If you want to sell your own home, then you have to become an expert in the field of marketing, negotiating, and real estate law. I am not a lawyer and cannot advise on the law, but at least a real estate agent knows the legal requirements to sell a home.

Executive Townhouse with Great Location

Just Listed!!!

This great townhouse is very conveniently located near Crabtree Valley Mall and the I-440 Beltline. This gorgeous home, built in 2006, has all the upgrades to include Corian countertops, wainscoting in the dining room and the stairs, wrought iron on the stairs, and plantation shutters in the family room. This home also has hardwood floors, and tile in this fabulous 3 story home. Not only does the family room have plantation shutters, but is also pre-wired for surround sound and a warming spiral staircase from the foyer. This home has 4 bedrooms and 2 full and 2 half baths and has nearly 2500 sqft. The master bedroom has cathedral ceilings and the bath has a separate garden tub and shower as well as a large walk-in closet.

The garage and a bedroom are located in the basement along with the utility room. The garage has epoxy flooring for long life and stain resistance. Additionally, the garage has plenty of storage room for the family bikes. The basement bedroom can be a game/entertainment room or a private bedroom for the teenage or the in-laws.

The kitchen is immaculate with plenty of counter space and an island bar for family breakfast. The kitchen also has a large pantry and is connected to the dining room. The deck overlooks the large and spacious common area shared by the surrounding neighbors. It is a great place to spend time with the children or the pets as there is a walkway completely around the common area.

Backyard Large common area for family and the pets to play, complete with a sidewalk that circles the common area.	Bedroom 2 Large bedroom with a sitting area and a good closet. This bedroom will be great for a guest room or for the teen.
Bedroom 3 Spacious bedroom on the second floor that has a good closet and place for a student's desk.	Bedroom 4 Spacious bedroom in the basement that could be an office, game/entertainment room or an in-law suite.
Deck Nice wooden deck that overlooks the common area with plenty of great foliage for your viewing. It makes for a great spot to spend the evenings with a glass of wine.	Dining Room Cozy family dining room with wainscoting whose window overlook the common backyard.
Family Room Spacious family room that has a gas fireplace, pre-wired for surround sound, and plantation shutters will be a cozy family gathering area to create family memories.	Finished Basement The finished basement includes an oversized garage with plenty of storage space, a bedroom that could have many different uses, and the utility room with a half bathroom.
Fireplace In the family room,the gas fireplace will make for cozy evenings for the entire family.	Garage Oversized garage with epoxy flooring, this garage has great storage space for all of the family toys.
Gourmet Kitchen Large kitchen that comes with Corian countertops, a large pantry, and an island bar, great for family breakfasts. This homes comes with all of the white appliances in the kitchen, including the refrigerator.	Master Bathroom The master bathroom comes complete with a large, garden tub and an oversized separate shower. This bathroom has 2 separate vanities for his/her use. Additionally, there is a large walk-in closet and a linen closet.
Master Bedroom A cathedral ceiling adorns this spacious room. It has plenty of room for a king-size bed and all of your special furniture. For More Information, please visit 2741LaurelCherry.com

Announcing a Great New Listing

A great home in a starter community close to Raleigh, this home offers much potential and many amenities for the 1st time home buyer or an investor. With 3 bedrooms and 2 baths, this home has the basic needs for a young family. However, this home also offers the added benefit of having a great sun room/den in addition to a large family room with a wood fireplace. This is a must see home for the investor or young family.

This home also offers a great backyard that will be great for barbecues, pool, or extended decking system. Additionally, the children will benefit from having a great yard to play as it is very clear and flat for many activities.

Little River park is approximately 1 mile from this home and offers a picturesque waterfall, a great swing set, and numerous picnic sites for the family to enjoy. Visit this great park when you visit the home as it is a quaint park with many trees.

For more information about this home and to view all the photos of this home, please visit the website 221PineviewDrive.com or email me with your questions.

Foreclosure Filling Skyrocket in March; Can you Compete as a For Sale By Owner?

Yet another hit to the economic fitness of the U.S., foreclosure jump as more Americans face foreclosures. An estimated 234,685 foreclosure filings was reported for March, up 57% from March 2007, which was 149,150. With the increase in foreclosures nationally, it may weaken the re-sale market and force depreciation among these homes. This means that one in every 538 households had received a filling during March.

The news gets worse as a new wave of adjustable-rate loans will be resetting to higher rates in May and June, adding more families to the same scenario that many families have been facing with their mortgages.

The rate of homes that lenders have taken possession has risen sharply over the past year, up 129%, which has translated to 51,393 properties nationwide, many without a public foreclosure auction as the homeowners have simply mailed in their keys.

It has been estimated that between 750,000 and 1 million bank-owned homes will hit the market this year, about a quarter of all homes up for sale. Additionally, these properties will continue to slow the sales and depress the values of existing homes in some areas throughout the country.

Declining home prices and stricter lending requirements had exposed the foreclosure environment as homeowners are unable to either sell their homes or refinance to better loans before their mortgage payments reset to higher rates.

Nevada, once again, has been ranked as the worst foreclosure market for the 15th month in a row at one in every 139 households receiving a foreclosure related notice, almost four times the national rate. This has resulted in a 24% increase in fillings over February and 62% over March 2007.

California came in second highest foreclosure rate in the country with one in every 204 households. With the state's population, the state has 64,711 properties facing foreclosures, the most of any state and better than double last year's total.

Florida comes in with 30,254 homes reported at least one filling, down nearly 7% from February, but up 112% from a year ago.

The remaining states with the highest foreclosure rates were Arizona, Colorado, Georgia, Ohio, Michigan, Massachusetts, and Maryland.

With all this doom and gloom, there must be a bright spot for the homeowners of Raleigh, North Carolina and Wake County. According to California's RealtyTrac, the pace of foreclosures slowed to a "trickle" in North Carolina in March.

The company reported that 3,298 foreclosure filings were sent out in the state for March, or one in every 1,222 households. This represents an increase of 2% over last year and a monthly decline of 18.6% since February. For North Carolinian, this is great news and it means that their homes on the market should sell quicker and with less competition than other areas of the country are facing.

However, this also means that we are at the mercy of other states due to the large influx of families from many of these troubled states. Typically, all real estate is local, but with such high foreclosure rates across the nation, it has made local real estate susceptible to national trends.

For more information about this and other issues facing the Real estate market in the Triangle, email me.

Is it the right time to sell by Owner?

It is a very tricky situation about selling a home by Owner and one that should not be entered into lightly. First of all, selling a home without representation can be a very dramatic experience and a challenging one as well. Of course, selling with some agents can be challenging and dramatic since not all real estate agents are created equal. Nonetheless, what are some of the obstacles that you can expect to face and is it a good time to sell in Raleigh without representation?

The obstacles that For Sale By Owners (FSBOs) face are usually present no matter the market situation. The greatest obstacle that you must face in both good times and bad, is exposure in the marketplace. It is not secret that most Buyer's agents look towards the Multiple Listing Service (MLS) when they begin working with a client. This search will yield many possible homes that the agent will then show the client. Only after all of these options are explored will the typical agent look towards homes sold by owners. It is not that agents do not wish to give these homes credance or show them, but rather the difficulty in searching and finding these homes since there is not a single database with all FSBOs. Despite what some FSBOs feel, it is not a vindictive move by licensed agents, but one born out of time management. Another way for the client to notice FSBOs is if they drive by the home while looking at other homes.

This leads to yet another obstacle for the do-it-yourselfer, availability. It is not uncommon for me to show a home with less than an hour's notice. If in fact, you are showing homes in the neighborhood and you spot a FSBO that interest your client, chances are you will either not be able to get the seller on the phone or the seller cannot make it home from work to show the home in a timey manner(timely manner meaning on the buyer's timetable). Remember, the client is the buyer/customer and if the customer cannot see a home when they are available, then you might as well take the sign out of the yard because you are out-of-business. To sell your home you MUST be on the buyer's schedule.

To add to this obstacle of visability and availability, exposure is paramount to selling for the highest possible price. Without proper exposure in the marketplace, a home will continue to be reduced in price until someone just happens to see the home and purchases it. The law of suppy and demand plays a major role in homes selling for full price. If the suppy of potential buyers is strong, then the demand for the home will be greater, resulting in a higher selling price.

Another obstacle is the commission. Many potential buyers are either not willing to pay the buyer's agent commission, or are not able to do so. FSBOs that are not willing to pay the buyer's agent commission are asking to have a home that is on the market indeterminately. For instance, I recently had a buyer who was interested in a FSBO, but the seller was not willing to work with me, even if my buyer was willing to pay my commission. This put a bad taste in my buyer's mouth and he walked away from the home without even considering it and bought a home down the street from this one. The seller could have sold his home had he been more open to working with a buyer's agent. To sell your home, you need to work on a professional level and take out your personal emotions.

These are just the major obstacles facing unrepresented sellers in the Triangle, but despite these, is it a good time to sell by yourself? The number one answer in the real estate business is "It depends", and this is the case here. It really depends upon your ability to remove as many obstacles that would prevent you from selling your home quickly and your location. The old adage about real estate is the three major factors to sell your home is location, location, and location. This is very true, but even more so for unrepresented sellers. You could have poor visability, availability and exposure and still sell your home quickly if you are in a hot location. Raleigh in general is a very popular and hot market as one of the few markets in the U.S that is expected to have positive appreciation in 2008, but this is not enough. You must be in the most highly sought after sub-area of the Triangle to expect to sell quickly.

What are these areas? The price points that are selling quickly are $200,000 to $300,000. The next popular price point is $300,000 to $400,000. The most popular areas in the Triangle are North Hills area and some areas of Cary with the better schools such as Davis Drive.

In closing, you can attempt to sell your home by yourself and you may get lucky and sell it quickly for a high amount. My advice has always been "to knock yourself out and try it, but if it fails, call me". Some of the people who have spoken with me and took my advice were successful and sold there home, but many have not. There are no guarantees in the real estate business when it comes to selling.